GPIV33.SA - GP Investments

[argonaut]

And a bit more...

 

http://www.gp.com.br/gp2012/web/default_download.asp?NArquivo=GP%20Investments%20l%20Material%20Fact%20(Par%20Corretora).pdf&arquivo=27D26554-F17E-4928-B5FD-D341026834A7

 

 

[argonaut]

Hi Packer,

 

Have you looked at the public investment vehicle GP Formed to bring private BHG Hotels -- their purchase - 30% of the hotel rooms (10,000 to be expanded to 14,000 over the next 2 years -- interesting because the Olympics comes next year to Brazil)...

 

It looks like from the filing here: http://www.sec.gov/Archives/edgar/data/1635282/000114420415023608/v407448_s1.htm GPIV33 is buying 1/3? of the warrants Only - to share in the upside above $11.50 per share...you can buy the common + 1/2 warrant (GPIAU) for just over $10 per share now..we would then need to run an analysis on the BRH hotel group to see what the value of that per share is currently...

 

Thoughts?

[Packer16]

I didn't see in the filing where they were going to buy BHG Hotels.  According the Prospectus they are going to look for opportunities in the US and Europe.  This is another nice vehicle to manage (GP will get management fees) and of they find the right company a good investment similar to Fairfax India.

 

Packer

[argonaut]

Thanks Packer. I was quick to draw some links...perhaps they used cash on hand to fund the 30% of $400MM purchase?

 

I have another GP question -  the PR below -- is this just transferring some shares from private hands to public or? And the price is quite a bit above the public price? I know the have both A and B shares perhaps these are the more restrictive shares? I didn't see the prospectus for this one.

 

-------------------------------------

GP INVESTMENTS, LTD.

PUBLICLY-HELD COMPANY WITH HEADQUARTERS IN BERMUDAS

MATERIAL FACT

In attention to the dispositions of CVM (Brazilian Securities and Exchange Commission) Regulation 358, dated January 3rd, 2002, as amended, GP INVESTMENTS, LTD., with headquarters located at 129 Front Street, Penthouse, Hamilton HM 12, Bermudas (“Company”), whose Class A Shares are traded in form of Brazilian Depositary Receipts (“BDRs”) at the stock exchange market managed by BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros, informs that it was disclosed the announcement of commencement of the secondary public offering of common shares issued by FPC Par Corretora de Seguros S.A. (“Par Corretora” and “Announcement of Commencement”, respectively), all being registered book entry shares, with no par value, free of any liens (“Shares” and “Offering”).

The Offering comprises a secondary public offering of 44.444.445 Shares, of which 7.332.074 are held by Algarve, LLC, a Company’s affiliate (“Algarve”), and the others shares are held by the selling shareholders as described in the Brazilian Prospectus (“Selling Shareholders”).

The price per share was set at the value of R$ 12,33 (twelve reais and thirty three cents) (“Price per Share”), upon the conclusion of the bookbuilding process, conducted with institutional investors by financial institutions hired to work in the Offering, as provided for in Article 23, Paragraph 1, and Article 44 of CVM Regulation 400, dated December 29th, 2003, as amended.

Furthermore, as provided for under Brazilian regulations, to the amount of Shares initially offered may be added another 4.444.445 Shares issued by Par Corretora and held by the selling shareholders, representing 10% of the common shares initially offered, of which 3.555.556 are held by Algarve.

This notice should not be considered an Offering announcement. For further information about the Offering, see the Announcement of Commencement and the Brazilian prospectus, which are available at CVM website.

São Paulo, June 3rd, 2015.

 

 

GPIV33_APR_1T15_EN-1.pdf

[Packer16]

I believe this is selling shares into the IPO of the insurance company that GP Investments has a stake in thus the different price than the GP Investments share price.

 

Packer

[argonaut]

Thanks Packer

[argonaut]

More good news today:

 

São Paulo, June 9, 2014 - GP Investments, Ltd., with its head office at 129, Front Street, Penthouse, Hamilton HM 12, Bermuda ("GP Investments") hereby announces the sale of equity investment in Sascar Participações S.A. ("Sascar" or the "Company") held by GP Capital Partners V, L.P. Fund ("GPCPV"), to Compagnie Financiere du Groupe Michelin "Senard et Cie", a company that holds all industrial and commercial companies and research activities of Groupe Michelin outside France. The deal comprises 100% of Sascar's shares, with other shareholders and co-investors being parties to the purchase and sale agreement, which is subject to certain precedent conditions including the approval of the Brazilian Antitrust Agency (Conselho Administrativo de Defesa Economica - CADE).

 

Founded 15 years ago, Sascar is Brazil's leading fleet management and cargo tracking services firm. The transaction value was based on an enterprise value of R$1.6 billion (around US$ 714 million) for Sascar. Alongside BRZ Investimentos' fund, GPCPV owns 56% of Sascar's total capital. GPCPV will receive approximately US$260 million for its 46% stake in the company.

 

GPCPV's total investment in Sascar will generate a cash-on-cash multiple of 2.6x and an estimated IRR of 33% in U.S. Dollars terms in about three years (or 3.5x cash-on-cash multiple and 45% IRR in Brazilian Reais). The transaction value is subject to the adjustments set forth in the definitive agreements.

 

Under GP Investments' leadership, Sascar has become the largest player in Brazil's fleet management and cargo tracking industry. GPCPV acquired control of Sascar in March 2011 and led the execution of a strategy aimed at the Company's development through organic and M&A growth, technological innovation and the implementation of a results oriented and meritocratic organizational culture. Mr. Marcio Tabatchnik Trigueiro, a partner at GP Investments, was appointed CEO of Sascar upon its acquisition by GPCPV and led its team throughout this successful trajectory, delivering consistent improvements in both operational and financial metrics. As of the end of 2013, more than 230,000 vehicles were being served by Sascar's fleet management and tracking services; the Company's EBITDA for fiscal 2013 was R$106 million; the CAGR from the date of GPCPV acquisition was 32% and EBITDA margin rose from 31% to 38% in the period.

[plato1976]

looks like the NAV is above $15 per share now

 

the value gap is still huge

 

More good news today:

 

São Paulo, June 9, 2014 - GP Investments, Ltd., with its head office at 129, Front Street, Penthouse, Hamilton HM 12, Bermuda ("GP Investments") hereby announces the sale of equity investment in Sascar Participações S.A. ("Sascar" or the "Company") held by GP Capital Partners V, L.P. Fund ("GPCPV"), to Compagnie Financiere du Groupe Michelin "Senard et Cie", a company that holds all industrial and commercial companies and research activities of Groupe Michelin outside France. The deal comprises 100% of Sascar's shares, with other shareholders and co-investors being parties to the purchase and sale agreement, which is subject to certain precedent conditions including the approval of the Brazilian Antitrust Agency (Conselho Administrativo de Defesa Economica - CADE).

 

Founded 15 years ago, Sascar is Brazil's leading fleet management and cargo tracking services firm. The transaction value was based on an enterprise value of R$1.6 billion (around US$ 714 million) for Sascar. Alongside BRZ Investimentos' fund, GPCPV owns 56% of Sascar's total capital. GPCPV will receive approximately US$260 million for its 46% stake in the company.

 

GPCPV's total investment in Sascar will generate a cash-on-cash multiple of 2.6x and an estimated IRR of 33% in U.S. Dollars terms in about three years (or 3.5x cash-on-cash multiple and 45% IRR in Brazilian Reais). The transaction value is subject to the adjustments set forth in the definitive agreements.

 

Under GP Investments' leadership, Sascar has become the largest player in Brazil's fleet management and cargo tracking industry. GPCPV acquired control of Sascar in March 2011 and led the execution of a strategy aimed at the Company's development through organic and M&A growth, technological innovation and the implementation of a results oriented and meritocratic organizational culture. Mr. Marcio Tabatchnik Trigueiro, a partner at GP Investments, was appointed CEO of Sascar upon its acquisition by GPCPV and led its team throughout this successful trajectory, delivering consistent improvements in both operational and financial metrics. As of the end of 2013, more than 230,000 vehicles were being served by Sascar's fleet management and tracking services; the Company's EBITDA for fiscal 2013 was R$106 million; the CAGR from the date of GPCPV acquisition was 32% and EBITDA margin rose from 31% to 38% in the period.